US: VF raises full-year forecast after strong third quarter
VF Corp today lifted its full-year expectations after recording a strong third-quarter performance.
The company, which owns the North Face, Wrangler and Timberland brands, among others, said today (22 October) that it expects full-year adjusted earnings per share to reach approximately US$9.60 per share, up from the $9.50 it forecast in July.
The improved forecast came as the clothing and footwear group recorded a 26.8% increase in net income to reach US$381.3m. Over the quarter, ended 29 September, revenue rose 14% to reach $3.1bn. Organic sales grew 2%, which the group attributed to continued strength in the outdoor and action sports, international and direct to consumer businesses.
Gross margin rose 140 basis points to a record 46.7%, reflecting improvements in nearly every business combined with the company's continued shift towards higher margin businesses.
"Our third quarter results clearly demonstrate VF's unique competitive advantages - diversity across brands, geographic regions and channels; powerful brands that resonate with consumers; and business disciplines that enable the consistent, successful execution of our growth strategies," said Eric Wiseman, VF chairman and chief executive officer.
"We are confident in our ability to deliver a very strong fourth quarter across our businesses, supported by higher levels of strategic investments in key brands and markets that are proven drivers of both top and bottom line growth."
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